KUALA LUMPUR: Fitch Solutions Country Risk & Industry Research has slightly raised Malaysia's score on its Short-Term Political Risk Index to 67.3 (out of 100), from 64.8 previously, to reflect the progress made in the formation of the new government, which has eased some political uncertainty.
The firm said, nevertheless, it remains to be seen if the PH-led government can implement policies and if prime minister Datuk Seri Anwar Ibrahim can prove that he has the support of more than 112 members of parliament (MPs).
"It also remains unclear which parties or alliances will be ultimately involved in the ruling coalition," Fitch Solutions noted.
Further, Fitch Solutions also noted that although Anwar has been appointed the prime minister, he will have to garner and maintain support from parties with diverse interests, which will likely weigh on the policymaking process.
Additionally, the leader faces a challenge from rival Muhyiddin Yassin, leader of the opposition Perikatan Nasional (PN), who claims to have obtained signed declarations of 115 lawmakers and is demanding that Anwar prove his majority in parliament.
Anwar has responded by saying that he plans to test lawmakers' support for his leadership with a confidence vote on December 19.
During this, the PH-led government also plans to table the 2023 budget, which was introduced before the election was called but has yet to be passed, the firm noted.